The People's Government shall encourage the active operation of all private economic enterprises beneficial to the national welfare and to the people's livelihood and shall assist in their development.
Fig. 30.1 Composition of production value of private industry sector 1949–1952
Wen (2021) Page 132 1,000 yuan [old RMB]"In 1950, the industrial value of the private sector grew
merely by 6.59%, whereas order, sale and purchasing by and processing
for the state increased by 158.6%, a 17% growth in total production
value, up to 28.83%. The value of independent production and sale was
decreased by 13.91%, a drop of 71.17%. The year 1951 was a boom
year for the private sector. However, the government was still the dominant
contributor to economic growth. Order, sale, and purchase by and
processing for the state increased by 106%, representing 42.71% of the
total production value. In comparison, independent production and sale
increased by merely 11.9%, 57.29% of total value. In 1952, the value
of order, sale, and purchase by and processing for the state increased by
36.49%. It went over 50% for the first time, whereas the absolute figure
of independent production and sale dropped by 20.17% "